• AML/CFTR Division 3.4.B AML/CFTR Division 3.4.B Reliance on others generally

    • AML/CFTR 3.4.7 Activities to which Division 3.4.B does not apply

      This Division does not apply to a firm in relation to CDD conducted for the firm:

      (a) by a third-party service provider under an outsourcing;
      (b) by an agent under a contractual arrangement between the firm and the agent;
      (c) if the firm is a bank — under a correspondent banking relationship to which the firm is a party; or
      (d) under a correspondent securities relationship to which the firm is a party.

      Note See:

      •   rule 2.1.5 (Compliance by officers, employees, agents etc)
      •   rule 2.1.7 (Application of AML/CFT Law requirements, policies etc to outsourced functions and activities)
      •   rule 3.3.5 (Correspondent banking relationships generally)
      •   rule 3.3.12 (Correspondent securities relationships generally).
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 3.4.8 Reliance on certain third parties generally

      (1) A firm may rely on introducers, intermediaries or other third parties to conduct some elements of CDD for a customer, or to introduce business to the firm, if it does so under, and in accordance with, this Division.
      (2) However, the firm (and, in particular, its senior management) remains responsible for the proper conduct of CDD and ongoing monitoring for its customers.
      (3) In determining whether to rely on a third party for purposes of this rule, the firm must have regard to any relevant findings published by international organisations, governments and other bodies about the jurisdiction where the third party is located.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 3.4.9 Introducers

      (1) This rule applies in relation to a customer introduced to a firm by a third party (the introducer) if:
      (a) the introducer's function in relation to the customer is merely to introduce the customer to the firm; and
      (b) the firm is satisfied that the introducer:
      (i) is regulated and supervised (at least for AML and CFT purposes) by the Regulator or by an equivalent regulatory or governmental authority, body or agency in another jurisdiction;
      (ii) is subject to the AML/CFT Law and these rules or to equivalent legislation of another jurisdiction;
      (iii) is based, or incorporated or otherwise established, in Qatar or a foreign jurisdiction that has an effective AML/CFT regime; and
      (iv) is not subject to a secrecy law or anything else that would prevent the firm from obtaining any information or original documentation about the customer that the firm may need for AML and CFT purposes.
      (2) The firm may rely on the CDD conducted by the introducer for the customer and need not:
      (a) conduct CDD itself for the customer; or
      (b) obtain any of the original documents obtained by the introducer in conducting CDD for the customer.
      (3) However, the firm must not start a business relationship with the customer relying on subrule (2) unless:
      (a) it has received from the introducer an introducer's certificate for the customer;
      (b) it has received from the introducer all information about the customer obtained from the CDD conducted by the introducer for the customer that it would need if it had conducted the CDD itself; and
      (c) it has, or can immediately obtain from the introducer on request, a copy of every document relating to the customer that it would need if it were conducting CDD itself for the customer.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 3.4.10 Group introductions

      (1) This rule applies in relation to a customer introduced to a financial institution in Qatar (the local firm) by another financial institution (B) in the same group, whether in or outside Qatar, if:
      (a) B or another financial institution in the group (the relevant financial institution) has conducted CDD for the customer; and
      (b) subject to subrule (2), the local firm is satisfied that all of the following conditions have been met:
      (i) the relevant financial institution is regulated and supervised (at least for AML and CFT purposes) by the Regulator or by an equivalent regulatory or governmental authority, body or agency in another jurisdiction;
      (ii) it is subject to the AML/CFT Law and these rules or to equivalent legislation of another jurisdiction;
      (iii) it is based, or incorporated or otherwise established, in Qatar or a foreign jurisdiction that has an effective AML/CFT regime;
      (iv) the local firm has all information about the customer obtained from the CDD conducted by the relevant financial institution for the customer that the firm would need if it had conducted the CDD itself;
      (v) the local firm has, or can immediately obtain from the relevant financial institution on request, a copy of every document relating to the customer that it would need if it were conducting CDD itself for the customer.
      (2) The local firm need not satisfy itself that all of the conditions in subrule (1) (b) have been met if the Regulator (or the equivalent regulatory or governmental authority, body or agency in another jurisdiction where the relevant financial institution is established) has determined that:
      (a) the group's AML/CFT programme, CDD and record-keeping requirements comply with AML/CFT Law and these rules;
      (b) the group's implementation of the programme and compliance with the requirements are subject to effective consolidated supervision by the Regulator or its equivalent; and
      (c) the group's AML/CFT policies, procedures, systems and controls adequately mitigate risks related to operations in high risk jurisdictions.
      (3) The local firm may rely on the CDD conducted by the relevant financial institution and need not:
      (a) conduct CDD itself for the customer; or
      (b) obtain any of the original documents obtained by the relevant financial institution in conducting CDD for the customer.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR 3.4.11 Intermediaries

      (1) This rule applies to a firm in relation to a customer of an intermediary, wherever located, if the customer is introduced to the firm by the intermediary.

      Example of intermediary

      a fund manager who has an active, ongoing business relationship with a customer in relation to the customer's financial affairs and holds funds on the customer's behalf
      (2) The firm may treat the intermediary as its customer, and need not conduct CDD itself for the intermediary's customer, if the firm is satisfied that all of the following conditions have been met:
      (a) the intermediary is a firm;
      (b) it is regulated and supervised (at least for AML and CFT purposes) by the Regulator or by an equivalent regulatory or governmental authority, body or agency in another jurisdiction;
      (c) it is subject to the AML/CFT Law and these rules or to equivalent legislation of another jurisdiction;
      (d) it is based, or incorporated or otherwise established, in Qatar or a foreign jurisdiction that has an effective AML/CFT regime;
      (e) the firm has all information about the customer obtained from the CDD conducted by the intermediary for the customer that the firm would need if it had conducted the CDD itself;
      (f) the firm has, or can immediately obtain from the intermediary on request, a copy of every document relating to the customer that it would need if it were conducting CDD itself for the customer.
      (3) If the firm is not satisfied that all of the conditions in subrule (2) have been met, the firm must conduct CDD itself for the customer.
      Derived by QFCRA RM/2019-8 (as from 1st February 2020)